Payment holidays for mortgage holders in Poland will be extended through 2024 for people who meet the income criteria, Prime Minister Mateusz Morawiecki was quoted as saying by Polsat News on Wednesday (Sept.20), ahead of parliamentary elections planned in October.
"The decision on this matter has already been made. We are extending the credit holidays for the entire next year. We will apply income criteria. We do not want those who are more affluent and wealthy to benefit from them," Morawiecki said.
He did not give details of the income criteria.
The payment holiday scheme was initially intended to help mortgage owners whose monthly installments surged due to rising interest rates by allowing them to skip a maximum of eight payments in 2022 and 2023, with no income criteria.
Poland's central bank cut interest rates by 75 basis points to 6.0% in September, much more than markets expected, as inflation slowed to 10.1% in August from a high of 18.4% in February.
Minimum wage to go up
Bidding to become the first Polish government since the fall of communism to win three terms in office, nationalists Law and Justice (PiS) are emphasising the impact the introduction of generous social benefits and sharp minimum wage increases have had on voters lives.
This is yet another government proposition ahead of Oct. 15 parliamentary elections in which the cost of living ranks high among voters' concerns.
Last week, Morawiecki announced that Poland's minimum wage would rise by almost 18% in January 2024.
After the hike to 4,242 zlotys ($980) a month in January, the minimum wage will rise again to 4,300 zlotys in July, bringing the total increase since PiS came to power in 2015 to 146%. The party has also announced a 60% increase in child benefit payments which will come into effect in January.
Źródło: TVN24 News in English, Reuters